Kaplan University Borrower Defense:
Legal Problems Former Students Should Know

If you attended Kaplan University and took out federal student loans, the school's history of government scrutiny, investigations, litigation, and borrower complaints may be worth examining.

This does not mean every former Kaplan University student automatically qualifies for loan discharge. But if you enrolled because of statements about career opportunities, job placement, program value, costs, financial aid, accreditation, or educational outcomes, the public record may provide important context for a Borrower Defense to Repayment claim.

Think your Kaplan University experience may qualify? Check your eligibility here.

Florida Attorney General Investigated Kaplan University Marketing

One of the most significant records involving Kaplan University comes from the Florida Attorney General.

In 2014, Kaplan entities, including Kaplan University, entered into an Assurance of Voluntary Compliance following an investigation into allegations that the schools had made misrepresentations or misleading statements, or had failed to disclose material information, while marketing programs to prospective students. Kaplan did not admit wrongdoing, and the agreement did not constitute a finding of liability.

Kaplan's SEC disclosures stated that the resolution included 200,000 dollars in investigation costs, tuition credits for certain students, and commitments concerning business practices.

For a former student who remembers being given misleading information before enrolling or borrowing, this type of official investigation may be highly relevant supporting context.

U.S. Senate Investigation Raised Serious Recruiting and Student Outcome Concerns

Kaplan was also examined in the U.S. Senate HELP Committee's investigation of the for-profit college industry.

The Committee's 2012 report identified Kaplan University as Kaplan's primarily online degree-granting institution and documented significant concerns involving recruiting, student retention, federal aid dependence, and student outcomes.

For students entering during the period studied, the report calculated withdrawal rates of approximately 69.1 percent for associate degree students and 68.2 percent for bachelor's degree students. It also found that Kaplan's online students in the examined cohort were substantially more likely to withdraw than students attending physical campuses.

The Senate report also discussed complaints and questionable recruiting practices, although it acknowledged reforms Kaplan had begun implementing, including the Kaplan Commitment trial period.

These findings do not prove what happened to any individual borrower. They can, however, provide useful background when a borrower's own documents and recollections show similar problems.

Kaplan University Was Named in Federal Whistleblower Litigation

Kaplan University was also named in federal False Claims Act litigation challenging practices connected with federal student aid and recruiting.

In United States ex rel. Urquilla-Diaz v. Kaplan University, allegations included improper recruiter incentive compensation tied to student enrollments. One portion of the case survived an appellate ruling and returned to the district court, although Kaplan ultimately prevailed on summary judgment, which was later affirmed.

The final outcome matters: the lawsuit should not be described as a finding that Kaplan University defrauded students. Its usefulness is as part of the documented history of scrutiny surrounding recruiting and enrollment practices.

State Investigations Extended Beyond Florida

Kaplan's own SEC filings also disclosed government inquiries from other states. An Illinois Attorney General Civil Investigative Demand sought information primarily concerning Kaplan University's online students in Illinois, while a Delaware Attorney General subpoena also sought information involving Kaplan University online students.

Again, an investigation or subpoena is not proof of wrongdoing. But for Borrower Defense applicants, these records may help establish the broader context in which their own enrollment experience occurred.

Kaplan University and Sweet v. Cardona Exhibit C

There is an important distinction former Kaplan students should understand.

The official Sweet v. Cardona Exhibit C does not separately print the name Kaplan University. Instead, it lists Graham Holdings Company - Kaplan and includes schools such as Kaplan Career Institute, Kaplan College, Mount Washington College, and Purdue University Global.

That connection is significant because Purdue University Global acquired Kaplan University in March 2018, and approximately 30,000 Kaplan University students transitioned to the new institution.

So Kaplan's institutional family and Kaplan University's successor are connected to Exhibit C, but borrowers should not claim that the document literally lists Kaplan University by name or that Exhibit C alone guarantees discharge.

Borrower Defense Claims Have Already Involved Former Kaplan University Students

This is not merely theoretical.

Graham Holdings disclosed to the SEC that the Department of Education had transmitted Borrower Defense applications involving students from schools formerly owned by Kaplan, including Kaplan University, seeking approximately 35 million dollars in federal loan discharges before interest. Later disclosures also referenced Sweet-related applications involving former Kaplan University and Purdue University Global students. Kaplan has disputed the merits of those claims.

That means former Kaplan University students have already used the Borrower Defense process to challenge federal student loan obligations connected with their enrollment experiences.

Were You Misled by Kaplan University?

Your strongest Borrower Defense case will normally depend on what Kaplan University told you, what information was omitted, when it happened, why you relied on it, and how you were harmed.

Admissions emails, advertisements, financial aid documents, enrollment paperwork, job placement statements, transfer-credit representations, screenshots, catalogs, and communications with school employees can all become important evidence.

If your Kaplan University experience sounds familiar, check your Borrower Defense eligibility now.

Want to prepare the application yourself? Use our Borrower Defense DIY Guide.

Want to see the types of government actions and misconduct evidence we have identified for other institutions? Browse other schools with usable misconduct research.

Not sure how your school is listed? Search the complete DefenseClaims school list.

Your School's History May Matter. Your Personal Evidence Matters Even More.

If Kaplan University's representations influenced you to enroll, continue attending, or take out federal student loans, do not assume your experience is irrelevant simply because it happened years ago.

Start by checking whether your Kaplan University claim may qualify

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